Introduction to Information Systems CHAPTER 1 Introduction to Information Systems

Learning Objectives Identify the reasons why being an informed user of information systems is important in today’s world. Describe the various types of computer-based information systems in an organization. Discuss ways in which information technology can affect managers and nonmanagerial workers. Identify positive and negative societal effects of the increased use of information technology.

CHAPTER OUTLINE 1.1 Why Should I Study Information Systems? 1.2 Overview of Computer-Based Information Systems 1.3 How Does IT Impact Organizations? 1.4 Importance of Information Systems to Society

[ Opening Case FanDuel and DraftKings] Describe how information technology is essential to the companies’ operations. Is information technology one of the companies’ problems? Explain your answer. Describe the companies’ information technology infrastructure. Now discuss possible technological problems that the companies might have. The companies face serious problems that are not related to information technology. Can information technology help them address these problems? Why or why not? Explain your answer.

Information Technology IT is making our world smaller, enabling more and more people to communicate, collaborate and compete…

We are…or it is… Global Massively interconnected Intensely competitive 24/7/365 Real time Rapidly change Information intensive

1.1 Why Should I Study Information Systems The Informed User—You! IT Offers Career Opportunities Managing Information Resources

The Informed User – You! Homo Conexus You are the most connected generation in history. You practice continuous computing. You are surrounded by a personal, movable information network. Other Items You benefit when you understand what is behind the application. You can recommend and help select IT applications You will be aware of new technology and understand how IT improves performance Understanding IT is beneficial to entrepreneurs Your personal information network is created by constant cooperation between: the digital devices you carry; the wired and wireless networks that you access as you move about; Web-based tools for finding information and communicating and collaborating with other people. You can pull information from the Web and push your ideas back to the Web. © Voon Nam Fook/iStockphoto

Digital Nomads A digital nomad is someone who uses information technologies such as smart phones, wireless Internet access, and Web-based applications to work remotely from anywhere. Source: Media Bakery

Build Your Own Multinational Company http://www.domystuff.com/ http://www.vworker.com/ http://www.webgrity.com/ http://www.b2kcorp.com/ http://www.globetask.com/ http://www.guru.com/ https://www.elance.com/ © Alex Gumerov/iStockphoto

IT Offers Career Opportunities IT is vital to modern business providing many lucrative career opportunities Programmers, business analysts, systems analysts, and designers Chief Information Officer (CIO) – executive in charge of the IS function Career opportunities will remain strong in the future MIS personnel vs. end users Changing Role of the IS Department Traditional Function of the MIS Department New (Consultative) Functions of the MIS Department

Top Job Rankings: Forbes (out of 10) #3 Information security analyst #7 Software engineer #8 Computer systems analyst

Top Job Rankings: U.S. News & World Report (out of 100) #3 Computer systems analyst #13 Software developer #20 Web developer #29 IT manager

Top Job Rankings: Money #1 Software engineer #7 IT Analyst

Capabilities of Information Systems Store huge amounts of information in small space Allow quick, inexpensive access to vast amounts of information worldwide Interpret vast amounts of data quickly and efficiently Increase effectiveness and efficiency of people working in groups in one place or around the world

Capabilities of Information Systems Perform high-speed, high-volume numerical computations Automate semiautomatic business process and manual tasks Provide fast, accurate communication and collaboration within and among organizations

MIS- Management Information Systems The planning for and the development, management and use of information technology tools…

MIS- Management Information Systems to help people perform all the tasks related to information processing and management.

MIS Department Managing systems development Systems project management Source: Howard Kingsnorth/The Image Bank/Getty Images, Inc. Traditional New (Consultative) Managing systems development Systems project management Managing computer operations Providing technical services Infrastructure planning, development, and control Incorporating Ecommerce into the business Managing system integration Internet, Intranet, Extranet Education Managing Outsourcing Initiating and designing specific strategic information systems As an end user, your information needs will often mandate the development of new strategic information systems. You will decide which strategic systems you need (because you know your business needs better than the MIS department does), and you will provide input into developing these systems. Incorporating the Internet and electronic commerce into the business As an end user, you will be primarily responsible for effectively using the Internet and electronic commerce in your business. You will work with the MIS department to accomplish this task. Managing system integration, including the Internet, intranets, and extranets As an end user, your business needs will determine how you want to use the Internet, your corporate intranets, and extranets to accomplish your goals. You will be primarily responsible for advising the MIS department on the most effective use of the Internet, your corporate intranets, and extranets. Educating the non-MIS managers about IT Your department will be primarily responsible for advising the MIS department on how best to educate and train your employees about IT. Educating the MIS staff about the business Communication between the MIS department and the business units is a two-way street. You will be responsible for educating the MIS staff on your business, its needs, and its goals.

1.2 Overview of Computer-Based Information Systems © zu difeng/Shutterstock

IT vs IS Information Technology Any computer based tool that people use to work with information and to information processing needs of an organization.

IT vs IS Information Systems Collects, processes, stores, analyzes and disseminates information of the specific purpose. Get the right information to the right people and the right time in the right amount in the right format

Data Information Knowledge transactions that are recorded, classified and stored but are not organized to convey any specific meaning Data Data Item. Elementary description of things, events, activities and transactions that are recorded, classified and stored but are not organized to convey any specific meaning. Information. Data organized so that they have meaning and value to the recipient. Knowledge. Data and/or information organized and processed to convey understanding, experience, accumulated learning and expertise as they apply to a current problem or activity. Information meaning and value Knowledge accumulated learning and expertise as they apply to a current problem or activity.

Basic Components of a CBIS Hardware: consists of devices such as the processor, monitor, keyboard, and printer Software: is a program or collection of programs that enable the hardware to process data Database is a collection of related files or tables containing data Network- is connecting system that permits different computers to share resources Procedures are the instructions for coming the above components in order to process information and generate the desired output

IT inside your organization Figure 1.4 Functional Area information systems Information Systems Inside an Organization

Information Technology Services IT Personnel IT Platform (or otherwise know as IT Components) Hardware Software Networks Database develop IS systems oversee security and risk manage data

Functional Area Systems A collection of application programs within an area is called Functional Area Systems Accounting Finance POM- Production/ Operations/ Management Marketing Human Resources IS

Accounting Systems Forecast revenues and business activity Determine the best sources and uses of funds Perform audits Financial reports and documents are accurate.

Marketing Product analysis: developing new goods and services Site analysis: determining the best location for production and distribution facilities Promotion analysis: identifying the best advertising channels Price analysis: setting product prices to obtain the highest total revenues

POM Customer orders Develop production schedules Control inventory levels Monitor product quality

Human Resources Recruiting process Analyze and screen job applicants Hire new employees Monitor employee productivity Employ Health and Retirement benefits

Data- Information-Knowledge-Wisdom Business Intelligence -helps analyze information to make better informed decisions Expert Systems – attempt to duplicate human experts by applying reasoning and expertise to a domain area (navigation routes) Dashboards- provide rapid access to timely information

Two Information Systems that support the entire organization Enterprise Resource Planning- connects all functional areas together Transaction Processing System- captures data from every where and everything ( more about these in later chapter)

Information Systems between Organizations Once you figured out your information systems within the walls of your company Streamline your business so you can purchase supplies and sell goods Stay competitive

Information Systems between Organizations Better known as supply chain management: Suppliers of raw materials through factories and warehouses to YOU Flow of: Materials Information money

Information Systems Among Organizations

Support for Organizational Employees Clerical Workers Knowledge Workers Functional area information systems Business Intelligence (BI) Expert Systems (ES) Dashboards (aka Digital Dashboards) Knowledge Workers: professional employees that are experts in a particular subject area (e.g., financial and marketing analysts, engineers, lawyers, and accountants.). Functional area information systems: summarize data and prepare reports, primarily for middle managers, but sometimes for lower-level managers as well. Business Intelligence (BI) Systems: systems that provide computer-based support for complex, nonroutine decisions, primarily for middle managers and knowledge workers. Expert Systems (ES): systems that attempt to duplicate the work of human experts by applying reasoning capabilities, knowledge, and expertise within a specific domain. Dashboards: a special form of IS that support all managers of the organization by providing rapid access to timely information and direct access to structured information in the form of reports.

FIGURE 1.22 Decision support framework. Type of System Function Example Transaction processing system Processes transaction data from terminal Walmart checkout point-of sale business events Enterprise resource planning Integrates all functional areas of the organization. Oracle, SAP system Microsoft Office Functional area IS Supports the activities within specific functional area. System for processing payroll Decision support system Provides access to data and analysis tools. “What-if” analysis of changes in budget Expert system Mimics human expert in a particular area and makes decisions. Credit card approval analysis Executive dashboard Presents structured, summarized information about aspects of business important to executives. Status of sales by product Supply chain management Manages flows of products, services, and information among organizations. Walmart Retail Link system connecting suppliers to Walmart Electronic commerce Enables transactions among organizations and between organizations and customers. www.dell.com

1.3 How does IT Impact Organizations? IT Reduces the Number of Middle Managers IT makes middle managers more productive, thus less needed IT Changes the Manager’s Job (changes decision making process) IT provides near-real-time information Managers have less time to make decisions IT provides tools for analysis to assist in decision making Will IT Eliminate Jobs? Creates new job categories, and requires more employees with IT knowledge and skills

How Does IT Impact Organizations? Examples Book Industry Music Industry Video Industry Software Industry Videogame Industry Photography Industry

How Does IT Impact Organizations? Examples Marketing Industry Recruiting Industry Financial Services Industry Motion Picture Industry DreamWorks Animation Automobile Industry Agriculture Industry

How Does IT Impact Organizations? Examples National Defense Industry Fashion Industry Education Legal Profession

IT Reduces the Number of Middle Managers IT makes middle managers more productive Consequently, IT reduces the number of middle managers required

IT Changes the Manager’s Job Decision making is the most important managerial task IT changes the way managers make decisions IT provides near-real-time information Managers have less time to make decisions IT provides tools for analysis to assist in decision making

Will IT Eliminate Jobs? The competitive advantage of replacing people with IT & machines is increasing rapidly Increasing the use of IT in business also: Creates new job categories Requires more employees with IT knowledge and skills

Social Effects Positive Opportunities for people with disabilities Provide people with flexibility in their work Robots will take over mundane chores Enable improvement in healthcare Make better/faster diagnoses Monitor critically ill patients more accurately Streamline the process of researching & developing new drugs

Ergonomic Products Wrist support Back support Eye-protection filter Adjustable foot rest Source: Media Bakery

Importance of Information Systems to Society 1.4 Importance of Information Systems to Society IT Affects Our Quality of Life The Robot Revolution Is Here Now Improvements in Healthcare

IT Affects Our Quality of Life IT has changed the way we work Smartphones provide constant access to text, email, and voice communications The lines between time at work and leisure time at home have become blurred Surveys indicate employees take laptops and smartphones on vacation

Enabling People with Disabilities to Work with Computers Computer solutions available to Visually-impaired users Hearing-impaired users Motor-impaired users Computer for visually-impaired user Computer for hearing-impaired user Computer for motor-impaired user © Harry Huber/Age Fotostock America, Inc.

Improvements in Healthcare IT used in Healthcare to: Make better/faster diagnoses Monitor critically ill patients more accurately Streamline the process of researching & developing new drugs To enhance the work of radiologists Allow surgeons to use virtual reality to plan complex surgeries & use robots to remotely perform surgery The Emergence of Cognitive Computing: IBM Watson

The Robot Revolution is Here Now Robotics used in Industry: Manufacturing Hospitals Farming operations

The Robot Revolution is Here Now Robotics used in the Home: Roomba to vacuum our floors Scooba to wash our floors Verro to clean our pools Looj to clean our gutters

The Robot Revolution is Here Now Baxter LoweBots Walmart shopping cart robots Drones Autonomous Vehicles

Video Break Telepresence (big bang clip) Telepresence (in office ex clip)